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. Subba Corporation has E & P of $240,000. Subba distributes airplane with a fair market...

. Subba Corporation has E & P of $240,000. Subba distributes airplane with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Mr. Pranay. Assume taxable transaction. The Airplane is subject to a liability of $55,000 that Pranay assumes. Pranay has:

A taxable dividend of $15,000.

A taxable dividend of $25,000.

A taxable dividend of $45,000.

A taxable dividend of $70,000.

A basis in the machinery of $55,000.
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.Subba Corporation has E &P of $240,000. Subba distributes airplane with a fair market value of $70000 (adjusted basis of $25,000) to its sole shareholder, Mr.Pranay. Assume taxable transaction.The Airplane is subject to a liability of $55,000 that Pranay assumes. Pranay has:

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